Shares of Ardelyx (NASDAQ: ARDX) are set to open sharply lower on Friday, plunging 17.73% in pre-market trading following the release of the company's first-quarter 2025 financial results. The biopharmaceutical firm's earnings report, released after market close on Thursday, fell short of analyst expectations, triggering a significant sell-off.

Ardelyx reported a quarterly loss of $0.17 per share, missing the Zacks Consensus Estimate of a $0.10 loss by a considerable margin. This represents a 70% negative surprise and a substantial decline from the $0.11 per share loss reported in the same period last year. The company's revenue for the quarter came in at $74.11 million, falling short of analyst estimates of $80.68 million, despite showing a year-over-year increase of 61.1%.

The disappointing results were primarily driven by lower-than-expected product sales. Ardelyx's flagship products, IBSRELA and XPHOZAH, generated sales of $44.40 million and $23.41 million respectively, both falling short of analyst projections. The company also reported a net loss of $41.144 million for the quarter, with operating expenses reaching $98.16 million. These figures have raised concerns among investors about Ardelyx's near-term growth prospects and its path to profitability, despite the company's focus on developing innovative treatments for unmet medical needs.